The Labour and HR Audit is a complex assessment carried out by RSM experts, reviewing the entirety of an employer’s operations – from legal compliance and payroll/social security administration to the practical implementation and cost-efficiency of HR processes.

The objective of the Labour and HR Audit service is to identify legal, labour-related, and operational risks, and to provide recommendations to ensure compliance and efficiency of processes, with a focus on designing the most optimal and cost-effective employment solutions for the company’s operations.

During the Labour and HR Audit, the company’s internal human resource management system is primarily assessed from a practical perspective. While it does not replace a classical labour law due diligence, it can identify situations where in-depth legal analysis and the adaptation of mandatory documentation are required. Labour law reviews and legal advisory are performed with the involvement of RSM’s experienced labour law specialists.

Who do we recommend the Labour and HR Audit to?

To businesses and company leaders who:

  • Do not have in-house HR or labour administration staff, but want all employment-related processes to be properly managed.
  • Want to be certain their employment practices are compliant with legislation and avoid fines.
  • Wish to verify whether their workforce is employed in a truly cost-effective way.
  • Are preparing for a labour inspection and want to identify potential shortcomings in advance.
  • Want to ensure that all benefits-related processes are transparent and compliant.
  • Intend to prepare for Pay Transparency requirements.
  • Wish to stay up to date with HR and labour law changes.
  • Seek to align payroll, social security administration, HR administration, and internal policies.
  • Want a full overview of the risks and efficiency of their employment processes in order to optimise operations.
  • Employ staff in remote work arrangements but are not fully aware of the rules of teleworking / home office.
  • Want to learn which HR processes and tools would better support their business – whether in retention, employee motivation, or internal regulations.

Why your company might need a Labour and HR Audit?

Hidden risks often exist within companies that may not be immediately visible but can result in severe fines, legal issues, financial risk, or operational disruptions. In our audits we frequently encounter:

  • Inaccurate working time records inconsistent with actual working hours.
  • Missing or unlawful documentation.
  • Delayed or incomplete notifications of new hires.
  • Insufficiently regulated home office / teleworking agreements.
  • Discrepancies between payments, overtime, weekend work, and attendance records, which can pose significant risks during inspections.
  • Deficiencies in working time frame documentation and settlements, resulting in fines.
  • Improperly applied work schedules causing substantial extra costs.

Key elements of the RSM Labour and HR Audit

The service is flexible and can be tailored to business needs, but typically covers the following areas:

Legal compliance

  • Employment contracts, employee information, and job descriptions
  • Internal policies (e.g. working time, benefits, home office / teleworking, code of ethics)

Labour administration practices

  • Compliance with notification obligations for new employees
  • Attendance sheets, working time records, and overtime settlements
  • Accuracy of payments
  • Exit process review
  • Regulation of cafeteria and other benefits
  • Leave administration
  • Home office / teleworking arrangements

Payroll and social security administration

  • Accuracy of payroll records and calculations
  • Handling of social security benefits and retirement-related processes

HR operational efficiency

  • Transparency and internal control of processes
  • Efficiency of employment practices
  • Competitiveness of remuneration and benefits systems
  • Compliance of HR processes, with recommendations for new process design
  • Identification of optimisation, automation, and digitalisation opportunities

Deliverables of the Labour and HR Audit

Upon completion of the audit, our clients receive a written expert report that provides a detailed summary of the identified risks and operational deficiencies. The report does not merely highlight problems, but also includes concrete, practical, and feasible recommendations for development and optimisation. If issues arise that require in-depth labour law analysis, RSM’s labour law advisors are involved in the process, ensuring full compliance and legally sound solutions.

Why is a Labour and HR Audit important?

Human resource management is about more than employment contracts and attendance sheets. Outdated policies, poorly designed benefit systems, or improperly documented exit procedures can all result in significant fines and risks. Inefficiently designed work schedules hinder effective operations and may cause considerable financial losses over time.

The combination of labour and HR audit provides the opportunity for your organisation not only to comply with legislation, but also to become more efficient, transparent, and secure in its operations.

Improperly managed employment practices can lead to disputes, regulatory procedures, and substantial fines. Based on our experience, even a single missing document or a poorly documented work schedule can cause penalties or losses amounting to millions of forints.

In 2025, the maximum level of fines imposed by the labour authority has significantly increased.

Why choose RSM?

  • Integrated expertise across multiple fields: HR, labour, payroll, social security, labour law, and taxation – all in one hand.
  • Decades of practical experience in auditing both multinational and domestic companies.
  • Proactive and improvement-oriented approach – we do not only identify issues, we help improve systems.
  • Comprehensive service – no need for separate lawyers, payroll experts, or HR consultants.
  • Preparation for labour inspections – you will know what the authorities would find, before the official report is issued.

Request a proposal from our expert!

Contact us for a tailored offer to support your organisation!